What impact will the launch of Libra have?

According to the latest news, the crypto currency Libra initiated by Facebook is planned to be launched as early as January next year. But initially, only a single currency anchored to the US dollar will be issued, and Libra anchored to other currencies will be launched later.

We can see that with the continuous delay of Libra’s launch, the crypto currency world has undergone major changes. USDT, USDC, DAI, BUSD and other stable currencies in the market have begun to occupy the market and become the main crypto currency. application.

At this time, what changes will Libra or the upcoming news bring to the market?

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First of all, let’s take a look at the concept of Libra. Libra is a cryptocurrency project led by social media Facebook. It is a synthetic currency unit based on a basket of currencies. The currency basket is mainly composed of US dollars, euros, British pounds, Singapore dollars and Japanese yen. 50% of the US dollar, 18% of the euro, 14% of the Japanese yen, 11% of the British pound, and 7% of the Singapore dollar, with the US dollar dominating half.

The five currencies explained here, except for the renminbi and franc, are actually the main currency types in circulation in the world, and the pilot work of the crypto renminbi is also ongoing. This is very interesting. Is it possible that the Libra Alliance wants to agree? Are other non-Libra members split and independent?

In fact, a lot of information can be seen from the early participating members of the Libra Alliance. The early participating giants are mainly American companies such as PayPal, Visa, Uber, Spotify, Coinbase, etc. Since PayPal is independent and under constant pressure from the US Securities Regulatory Commission, outsiders continue to speculate whether Libra Can be launched normally.

However, Libra itself is a kind of alliance chain, which provides another solution for the existing crypto currency, connecting multiple currency types in series and restraining each other.

We can see the impact of Libra on the world through some major events in the development of Libra.

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On June 18, 2019, Facebook released the Libra white paper with the aim of seeking new profit growth points from the field of crypto currency as a breakthrough point, emulating domestic Tencent, and breaking through the payment field based on social networking.

In the United States, online payment tools are still financial giants such as Visa, Master, and PayPal. They do not form a parallel scene of the three giants of WeChat, Alipay, and QuickPass like in China, and these three payment tools are all in addition to payment. Other areas outside the country have developed well, and the other is also launched by the central bank, which led to Facebook’s decision not to enter the payment track.

On July 2, 2019, Democrats of the US House of Representatives issued an open letter to Facebook, calling on it to suspend all Libra development. Moreover, the hearing was held on July 16th, 14 days later. So far, Libra has fallen into a state of stagnation. During this period, Libra was called to attend hearings to discuss compliance issues.

At the end of 2019, Libra finally ushered in a fatal blow-Uli Maurer, the Swiss Finance Minister and outgoing presidency, said, “Facebook’s Libra project is a failure in its current form and needs to be revised before it can be approved. “

In addition to this year’s outbreak of the epidemic, some Libra members began to withdraw, and the main creative team also began to change. Libra also began to change the white paper and change its thinking. It is no longer to shape the previous business alliance against the central bank, but to use stablecoin as the core. New ecological construction.

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After March of this year, the blockchain encountered the “3.12” black swan event, and since June began to usher in the popularity of DeFi, Libra has withdrawn from people’s vision.

The re-launch of Libra this time may be related to Biden’s inauguration as President of the United States, and its launch may be a great benefit for legal tender.

But what cannot be ignored is that for China, if Libra is widely adopted and does not support the crypto renminbi, then the libra alliance chain will confront the crypto renminbi. This is also the negative part of the domestic launch of Liberal, especially when the domestic and the United States are at the peak of the economic war.

Therefore, we should pay more attention to how to ensure the steady rise of the domestic economy and how the crypto renminbi will go to the world. Perhaps this is also the original intention of the crypto renminbi.

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